posted byBagasian LawMarch 10, 2021
Hiring a breach of contract attorney ensures that businesses' contracts are honored and compensation is paid for losses due to a contract breach.
Business contracts are the foundation for most business transactions, but due to unforeseen circumstances that contract might be breached.
In this article, we will be discussing:
A breach of contract is simply defined as a violation of an agreement made through a formal contract.
The purpose of a contract is to define expectations of a particular relationship, whether that is between a buyer and seller, a business owner and his or her employees, or between two business partners.
Contracts clearly explain what is expected of each party entering the contract, such as paying a fee, completing a set of tasks, or upholding a certain responsibility.
If either party does not meet the expectations agreed upon in the contract, the contract has been breached.
Since contracts are legally binding, a contract breach can be litigated in court.
A breach of contract can occur not only if one party does not uphold thier part of the agreement, but also if certain responsibilities are not carried out in a timely manner. For example, if a contract states that a tenant must pay their landlord by the first of every month, however, the tenant pays on the fifth of that month, the contract has been breached.
Additionally, a breach can be categorized as material or immaterial.
A material breach is when the breach of contract results in damages that the party has a right to recover if a lawsuit is filed in court.
On the other hand, an immaterial breach still means the obligations of the contract were not met. However, neither party suffered as a consequence of this breach.
There are many contexts in which a breach of contract can occur. For the purposes of this article, we are just going to explain a few.
First, if a party does not fulfill their obligations by a certain date or in full, this is considered a minor breach. Although the obligation was fulfilled, it was not fulfilled on time or fulfilled completely as stated by the contract and therefore the contract has been breached.
For example, if a product ordered online arrives late or is missing parts, this is considered a minor breach.
Second, an “actual breach” is when one party fully refuses to fulfill the responsibilities stated in the contract.
For example, a business provides a service to a client, for an agreed price, and that client never pays the business.
Third, an “anticipatory breach” is when one party notifies the other party with whom they are in a contract that they are not going to fulfill their obligations.
For example, if a business provides a subscription service that customers have to pay for monthly and that customer notifies the business that they will not be paying for that service after it has taken place, this is considered an “anticipatory breach.”
There are numerous ways of settling a breach of contract.
First is restitution which means the party that violated the contract restores the other party to where they were before the contract, such as refunding money for incomplete services.
Additionally, a contract breach can be settled if the violating party fulfills its obligations.
If there was a material breach and one party suffered from the breach of contract, such as a loss that cannot be recovered, the violating party may choose to compensate for these losses.
The two parties can attempt to settle the breach amongst themselves without external help or arbitration.
However, if the two parties are unable to resolve the dispute, litigation is necessary. This is where a business or contracts attorney comes in.
The two parties can sign an additional contract that resolves the one that has been breached. This is called adjudication, which results in a ruling made by a judge who then tells each party how to remedy the breach.
The court can choose to change the contract if it is judged as being unequal or not fair. Or, the court can choose to fully get rid of the contract, as if it had never existed.
An attorney will represent each party in the court of law, helping recover losses and settle the case.
Since attorneys have a deep understanding of contracts and their legal implications, they will be able to help you understand if a breach has occurred, the steps you need to take to remedy that breach, and can represent you in court if necessary.
Hiring legal representation ensures that your business contract is honored and if not, that the party who violated that contract must deal with the consequences.
An experienced business attorney will help you navigate complex contracts and help you understand how to settle a breach, ensuring the success and safety of your business.
Los Angeles-based lawyer, Alina Bagasian, will provide the best legal servicesfor your business.
Possessing an understanding of corporate and commercial business, Alina Bagasian is ready to represent your business and provide you with excellent legal advice.
The Law Offices of Alina Bagasian have achieved 100% client satisfaction, providing clients with unlimited advice, and offering eight different services.
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